Nintendo Co. warned that its profit and sales may decline in the current fiscal year in part because of the coronavirus, sending its shares tumbling despite strong financial results in the last quarter.
The Kyoto-based game-maker forecast a 15 percent decline in operating profit, a drop in Switch console sales to 19 million and a fall in software sales to 140 million. Its shares dropped as much as 5.6 percent on an intraday basis on Friday, while the Tokyo market rose.
In the last quarter, helped by global home confinement enforced by the virus, Nintendo’s operating profit tripled to ¥89.5 billion ($842 million) while its Animal Crossing: New Horizons title soared to 13.4 million sales in its first six weeks on sale. That helped Nintendo sell 21 million Switches in the year ended March, beating its own estimate and Morningstar Research’s expectation of roughly 20 million units.